Posts Tagged ‘ONGC’

With oil flowing past $145 a barrel, leading companies in the country have lined up plans to explore opportunities in jatropha cultivation and prospects of biofuel. The companies are flocking to Gujarat, which has earmarked 1,900,000 acres in the Narmada region for the crop cultivation.

The companies, including Mukesh Ambani’s Reliance Industries and Tata Chemicals and the Essar group, are carrying out research and trials for producing oil from the cash crop in the state.

“The area of wasteland in Gujarat is higher than Maharasthtra and Gujarat government has earmarked 1,900,000 acres in the Narmada region for jatropa cultivation,” says an analyst who works on alternative fuels.

While construction major Shapoorji Pallonji has been allocated wasteland, Mumbai-based renewable energy company Royal Energy is in the process of acquiring close to 2,000 acres in Deesa region.

Hyderabad-based Nandan Biomatrix has joined hands with Ahmedabad-based V Worldwide Group to cultivate jatropha in 100,000 acres of wasteland in Gujarat, sources said.

Besides, UK-based D1-BP Bio Fuels has signed a memorandum of understanding (MoU) with IL&FS Ecosmart for bio-diesel production in the state. The British company is also looking for fields in Uttar Pradesh, Rajasthan, Madhya Pradesh, Tamil Nadu, Assam and Maharasthra for the plant cultivation, company sources said.

While the yield is the highest from the fourth year onwards, about 2,500 litres of bio-diesel can be produced per acre every year.

The biofuel division of Tata Chemicals is also mulling a foray into overseas bio-fuels market, sources in the company said. The company has chalked out plans of extracting bio-fuel from Gujarat, Rajasthan, Madhya Pradesh, Chattisgarh, Orissa, Karnataka and Tamil Nadu.

“The company is targeting 500,000 acres in each state,” the sources said. In Gujarat, the company has started work in Jamnagar district, he added.

Mukesh Ambani-led Reliance Life Sciences is aiming to set up a bio-ethanol unit in Kutch for blending with petrol. Reliance has also started some trials at its Kakinada refinery in Andhra Pradesh and is exploring plantation in Kutch, sources said. However, an e-mailed query to the company remained unanswered.

Essar group is carrying out trials of jatropa in Jamnagar near its refinery project on a pilot basis, sources close to the development said. Besides, Shroff Foundation, an NGO is carrying out pilot projects in Kutch.

Companies like Tata Motors and Indian Oil Corporation are involved in jatropa plantation.

Ahmedabad-based Avni Seeds has lined up plans for planting jatropa in 5,000 hectares in a year. The company has also roped in ICICI for farm loan, sources said.

Arvind Mills has been exploring jatropa cultivation in Maharashtra. The project has, however, been put on hold as of now, said a company official.

Gujarat government has earmarked 1,900,000 acres in the Narmada region for jatropa cultivation. Rajasthan has over 324 lakh hectares of wasteland, however, there is a serious issue of water,” says an analyst who works on alternative fuels.

It’s one of the toughest times India Inc has faced. With a slowdown in the economy, rising inflation and eroding profits, there is tremendous pressure on companies across sectors. The worst hit are the oil companies as crude prices are zooming to record highs.

But there is a silver lining amidst the gloom, especially for the government. With the tax coffers filling up like never before, thanks to more taxes being paid by India’s top performing companies, the government can breathe at least a little easier.

Despite incurring heavy losses, India’s oil companies are the top taxpayers. Read on to find out who the top 10 corproate taxpayers in India are…

1. ONGC

The Oil and Natural Gas Corporation retained its position as the highest corporate taxpayer for the financial year 2007-2008 though it paid a lesser amount than in the previous year.

Even as oil marketing companies are reporting losses on rising crude oil prices, Indian Oil Corporation emerged as the second highest taxpayer, having paid a whopping Rs 4,625 crore (Rs 46.25 billion) in taxes in 2007-08.

During 2006-07, IOC paid a tax of Rs 1,125 crore (Rs 11.25 billion).

3. State Bank of India

State Bank of India, the country’s largest bank is ranked third in the list of top taxpayers.

Brushing aside fears of industrial slowdown, the government’s revenue collections from direct tax such as corporate and income tax continued the growth momentum and was up by 43.45 per cent at Rs 49,411 crore (Rs 494.11 billion) during the April-June 21 period over the corresponding period last fiscal.

4. NTPC

The National Thermal Power Corporation is the 4th highest taxpayer in the country.

It shelled out Rs 3,587 crore (Rs 35.87 billion) in 2007-08.

In 2006-07 the company contributed Rs 4,289 crore (Rs 42.89 billion) to the government’s tax kitty.

5. SAIL

The Steel Authority of India Ltd was the 5th top taxpayer in the country.

The Deposit Insurance Corporation (DIC) Bill was introduced in the Parliament on August 21, 1961.

A decade later, in 1971, the Credit Guarantee Corporation of India Ltd was set up. While deposit insurance was introduced to protect depositors, ensure financial stability, instill confidence in the banking system and help mobilise deposits, the establishment of the Credit Guarantee Corporation was to ensure that the credit needs of the neglected sectors and weaker sections were met.

The essential concern was to persuade banks to make available credit to not so creditworthy clients. In 1978, the DIC and the CGCI were merged to form the Deposit Insurance and Credit Guarantee Corporation.